150,000 Finns took a part-time pension in 30 years it was on offer

Written by Theo Andrew

19/12/17

Almost 150,000 Finnish retirees took up the part-time pension in the 30 year period it was on offer, a new study has revealed.

A report published by the Finnish Centre for Pensions showed that the part-time pension was particularly popular among white-collar workers, with average take-outs amounting to €761 per month.

The part-time pension was offered to Finns throughout 1987 to 2017 in order to ease the workload in the final stages of a person’s working career.

In February, the part-time pension was replaced with the partial old-age pension, removing the limits on how much a person could work while withdrawing the pension.

Finnish Centre for Pensions economist, Janne Salonen, said: “Of the new retirees on a part-time pension in the year 2005, about 61 per cent were white-collar workers. In 2015, the corresponding percentage was 68.”

People who worked in education made up almost one fifth of those taking a part-time pension by 2016, while nearly half of women taking the pension worked as experts.

“The professions of the part-time retirees vary a great deal. Most men (55 per cent) on a part-time pension were managers and senior experts. Workers in the construction, repair and manufacturing fields, as well as in processing and transport industries were also well represented among the male part-time retirees”, Salonen added.

The new partial old-age pension allows people to draw either 25 per cent or 50 per cent of their pension when you hit 61, with no restrictions on earnings during withdrawal.

Research by the Centre has found that a typical recipient of the partial pension is a 61 year old man who withdraws half of his pension early. In addition, a fifth of those benefitting are self-employed, and three out of four are working or have last worked in the private sector.

More than 90 per cent of those receiving a partial early old-age pension are drawing half of their accrued pension. Their average pension amounts to €900 per month. In practice, the earnings-related pension they have accrued is on a par with that of those retiring on an old-age pension.

The average partial early old-age pension for those who have withdrawn a quarter (25 per cent) of their pension amounts to €460 per month. Large partial old-age pensions of more than €1,500 account for over 10 per cent.

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